State budget expenditure on defence to increase to 2.52 per cent of GDP

Press release, 17 March 2022 

The Seimas increased the state budget’s defence spending to 2.52 per cent of gross domestic product (GDP). As many as 123 MPs voted unanimously in favour of this amendment to the 2022 state budget.

The Government suggests that this decision will make it possible to allocate an additional amount of up to EUR 297.99 million to the national defence and security this year.

The amendments adopted will grant the Ministry of Finance the right to borrow funds, on behalf of the State, for the fulfilment of the obligations of the Republic of Lithuania relating to NATO membership. Based on the Ministry of Finance’s GDP forecasts for Lithuania of 22 December 2021, it will total up to 2.52 per cent of GDP.

According to the initiators, the Ministry of Finance would borrow on the basis of the actual necessity indicated by the Ministry of National Defence, which is planning to acquire additional weaponry, military equipment, ammunition, and cyber security-enhancing equipment for these funds.

The appropriations provided for in the Law for the Ministry of National Defence in 2022 have thus far been 2.05 % GDP, as estimated on the December 2021 OECD GDP forecast for Lithuania, and they amounted to EUR 1 201 million.

Rimas Rudaitis, Adviser, Press Office, Information and Communication Department,

tel. +370 5 239 6132, e-mail: [email protected]